2. Using the following Income Tax data, and given that your annual income is $ 85,000: a) Calculate the total tax (in $); b) The average tax rate (%); c) The marginal tax rate (%); and d) What is the classification of this taxation system? Income ($) Tax Rate (%) 0 - 60 000 60 001 - 70 000 10 70 001 - 100 000 Over 100 000 15 17

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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2. Using the following Income Tax data, and given that your annual income is $ 85,000:
a) Calculate the total tax (in $);
b) The average tax rate (%);
c)
The marginal tax rate (%); and
d) What is the classification of this taxation system?
Income ($)
Tax Rate (%)
0- 60 000
60 001 - 70 000
10
70 001 - 100 000
15
Over 100 000
17
Transcribed Image Text:2. Using the following Income Tax data, and given that your annual income is $ 85,000: a) Calculate the total tax (in $); b) The average tax rate (%); c) The marginal tax rate (%); and d) What is the classification of this taxation system? Income ($) Tax Rate (%) 0- 60 000 60 001 - 70 000 10 70 001 - 100 000 15 Over 100 000 17
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